All About Oil: Jim Cramer Explains What Saudi Arabia Attacks Mean for Markets

Jim Cramer is weighing in on oil and Real Money Stock of the Day BP
(BP) - Get Report .

What You Need to Know About Oil

Let's dive in...

The Dow dropped for the first time in eight days following an attack on two key Saudi Arabian oil facilities.

Oil prices surged the most since the 1991 Gulf War in early trading, before paring gains to between $5 and $6 a barrel, after drone attacks on the Abqaiq and Khurais crude facilities in Saudi Arabia, which caused massive fires and shuttered nearly 5% of global production.

"Our producers will clean up and so will our refiners, but you need to be very dexterous if you want to make money on that trade, and it is a trade," wrote Cramer in his Real Money column, which focuses on oil.

So, how should investors look at oil? Here's what Cramer says.

Why BP?

BP Plc is Real Money's stock of the day.

The company is a holding in Cramer's Action Alerts PLUS portfolio.

And, with the oil jump thanks to the Saudi Arabia attacks, should consumers be worried about the prices at the pump?